Daily Newsletter

23 August 2023

Daily Newsletter

23 August 2023

Rosatom begins main phase work at Hungary’s Paks II nuclear plant

The start of construction follows amendments to the construction contract agreed in August 2023.

Surya Akella August 23 2023

Atomstroyexport, a subsidiary of Russian state nuclear energy company Rosatom, has commenced main-stage construction of two new water-water energetic reactor (VVER)-1200 power units at the Paks II nuclear power plant (NPP) in Hungary, with a total power-generating capacity of 2.4GW.

Rosatom’s Atomstroyexport and Hungarian company Duna Aszfalt began preparations for the excavation of the pit where the future power unit 6 will be located.

Bauer Hungary began soil consolidation works while continuing with the construction of groundwater cutoff at the site.

Construction works began after the parties agreed on amendments to the contract for the two power units' construction on 18 August 2023. Paks II Nuclear Power Plant Ltd, the project's owner, issued a notification of the project’s transition to its second stage.

Rosatom stated that the pit excavation for power unit 6 to a depth of five metres is the start of large-scale work.

The area of excavation at the site is the size of four soccer fields. A million cubic metres of soil have been removed from the site.

Excavation work at the site will continue until the end of autumn 2023.

Authorisation from the power plant will also help Rosatom and its partner enterprises in Russia proceed with the production of the main power equipment.

The Paks II NPP project is based on an intergovernmental agreement between Hungary and Russia signed in January 2014. Three basic contracts are involved in the project’s construction.

The main licence for the construction of the project was secured in August 2023. Power units 5 and 6 at Paks II are expected to have a life of 60 years.

Estimated investment in the project is €10bn ($10.8bn) and is being provided by Russian banks. Hungary will repay the loan by 2046.

The Paks nuclear power plant, which has been operating since the 1980s, is powered by four units with VVER-440-type reactors. This plant supplies more than 50% of the country's electricity.

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